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Novavax (NASDAQ:NVAX) stock fell 6% on September 21 and continued to fall overnight after JP Morgan Chase analyst cut his price target from over $100/share to only $27 with a “poor performance” rating.
Eric Joseph said the move came after he revised the bank’s outlook for Novavax’s Covid-19 vaccine, called Nuvaxovid.
The stock, which traded early on September 21st at nearly $27.40, traded early on September 22nd at just over $24. Novavax’s market cap is now just under $2 billion and is down 90% year-over-year.
Novavax was the star of Covid-19 in 2020 because of hopes for its vaccine, as developed with money from the Gates Foundation and the US government. The company said at the time that its Matrix-M adjuvant would enable rapid scale-up of vaccine production that would not require special handling.
But Novavax finished third in the vaccine race against MRNA-based solutions Pfizer (NYSE:PFE), who got his technology from BionTech SE (NASDAQ:BNTX) from Germany and Modern (NASDAQ:MRNA). Until last April, I called the stock party. At the time, the stock was trading at $62, but most analysts, such as the one at JP Morgan, still rated it highly.
Novavax has other vaccines in the pipeline, including the seasonal flu vaccine. But it has not been able to get approval in the past and has no orders. Analysts are now calling it a risky stock in a risk-free market. Just six even say it Tippranks they are following it now and all their predictions look out of date.
NVAX Stock: What Happens Now
Before the start of the Covid-19 pandemic, there was Novavax $5/share. Could go there again.
The company ended June with about $1.4 billion in the bank, but cash flow from operations has been negative for four quarters in a row, which seems unlikely to change. He needs to save that money and get his flu shot approved.
Dana Blankenhorn held a long position in MRNA at the time of publication. The opinions expressed in this article are those of the writer and are the subject of InvestorPlace.com Publishing Guidelines.